Emera pledges support to local Maritime Link contractors

The Emera subsidiary building the $1.5-billion Maritime Link portion of the Muskrat Falls hydro development paid tribute to local contractors in Sydney Tuesday, and said it will protect local suppliers as one of the main contractors on the project falters under a financial restructuring.

"People not meeting their targets is a serious concern and it's one we will deal with," Emera Newfoundland and Labrador president Rick Janega told CBC News.

In March 2015, the Spanish energy company Abengoa SA was awarded a $197-million contract to build 400 kilometres of overhead transmission lines in Newfoundland and Labrador and Nova Scotia, only to file for creditor protection a few months later.

The Maritime Link is being built to carry Muskrat Falls-generated electricity from Newfoundland to Nova Scotia via a subsea cable.

This spring, Emera served notice Abengoa was in default of its commitments on the Maritime Link and issued a claim on the company's performance bond.

Emera protecting local firms

With Abengoa in financial crisis, Janega said Emera is committed to taking care of local firms.

"Our main goal is to ensure we protect the costs of the project and to ensure that the subcontractors who are doing well are treated fairly and we do our best to deliver on both of those," he said.

Janega would not explain the steps to protect local firms, but said Emera has been vigilant to make sure bills are paid.

"We have been honouring all aspects of our contract to ensure local suppliers and contractors are part of our plan and that we understand they are a key part of us getting our work done," he said.

"We'll do everything we can to ensure that that doesn't happen."

He paid tribute to Powertel, the main subcontractor working for Abengoa.

Emera says Abengoa missed productivity targets in March, April and May. Janega would not say if the company has met targets in June.

"The Spanish company responsible for transmission construction for Maritime Link link has completed work for us on each of the lines that they are responsible for including the AC, DC and grounding lines," Janega said.

Abengoa remains on the job, receiving materials and assembling towers, he said.

Subcontractor Powertel has been doing the balance of the work on the grounding lines being built across Cape Breton.

The Muskrat Falls project itself is facing delays, with the CEO of Nalcor Energy saying last week that power won't begin to flow until 2019 and that the cost has ballooned to $11.4 billion.

While the Maritime Link project remains on budget and on track for a late 2017 completion, Janega admits Abengoa's situation is an ongoing concern.

"It does make it difficult to ensure we deliver our project on time when one of our suppliers are having difficulty meeting their commitments."

Other aspects of the Maritime Link project are proceeding without drama.

This summer the largest transformer will arrive in Cape Breton and converter stations will be built. The Nova Scotia portion of the overhead transmission lines — 100 kilometres — are expected to be completed by the end of 2016.

'A good project' for Cape Breton 

At Membertou First Nation, Emera praised the efforts of subcontractors.

One of those is well-known Cape Breton construction firm Joneljim Construction, which has won various jobs on the Maritime Link over the past 18 months.

"Right now the economy in Cape Breton is not in good shape. This project is very good for the people in Cape Breton island," said Joneljim president James Kehoe.

"There's a lot of work to be done. The next couple of years there is going to be a lot of people employed."